Dongfeng Motor: Targeting sales of 1M each of CVs, own-brand cars, and NEVs by 2025
Divesting from stagnant JVs, accelerating CASE, and transforming into a high-tech company
2022/09/01
- Summary
- Overview of DFMC: Sales volume in 2021 was 3.2 million units, with foreign joint venture brands accounting for about 70%
- Mid-term plan(2021-2025): Focus on CASE, vehicle business, high-tech sector, and ecosystem services
- Commercial vehicles: China's top seller of commercial vehicles in 2021, with three commercial vehicle own-brands
- Passenger cars: EV platform development, focus on Voyah, Dongfeng Aeolus and high-end electric off-road brands
- CASE: In-house development of motors, batteries, IGBT modules, etc., and promotion of autonomous driving pilot project
- Dongfeng Motor sales volume in China (ex-factory units)
- Sales forecast by LMC Automotive: Dongfeng Motor’s sales in 2025 will be 763k units
Summary
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Dongfeng Motor Corporation (DFMC) sold 3,194,000 vehicles in 2021, making it the third-largest automaker in the Chinese market. The breakdown is 2,529,000 passenger cars and 665,000 commercial vehicles. The volumes of own-brand vehicle sales and joint venture brand sales, including both Chinese and foreign joint ventures, was around 1,039,000 units and 2,155,000 units, respectively.
DFMC is a large, state-owned Chinese automobile manufacturer, and its subsidiary, Dongfeng Motor Group Co., Ltd. (DFMG), is listed on the Hong Kong Stock Exchange. The company has three commercial vehicle brands: Dongfeng, Chenglong, and Vasol, and its own-brand passenger cars include Dongfeng Aeolus, Dongfeng Forthing, and its premium EV brand, Voyah. DFMC also plans to launch a high-end electric off-road brand. In addition, it is developing its passenger car business through joint ventures with foreign companies such as Nissan, Honda, and Stellantis. In recent years, the dissolution of Dongfeng Renault, the bankruptcy of Dongfeng Yulon, and the withdrawal of Dongfeng Yueda Kia have accelerated the separation of underperforming joint ventures, and the company continues to reorganize its subsidiaries.
During the period of its 14th Five-Year Plan (2021-2025), DFMC aims to sell more than 1 million units each of commercial vehicles, own-brand passenger cars, and New Energy Vehicles (NEVs), and to capture a market share of more than 16%. The company will invest CNY 100 billion in R&D to electrify all new models of its main passenger car brands by 2024. In addition, DFMC will build a “vehicle business + high-tech sector + ecosystem service” business to accelerate the transformation into a high-tech company.
(Note: MarkLines passenger car sales figures used in this report refer to sedans, SUVs, and MPVs. Vehicle data rounded off to the nearest thousand units)
Related reports:
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Chinese Market Q1 2022 (2): Major non-Chinese OEMs restructure joint ventures and localize R&D (May. 2022)
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